(a)
any of the following fringe benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer:

(i)
an expense payment fringe benefit where the recipients expenditure is in respect of:

(A)
a lease or licence in respect of a unit of accommodation occupied or used for the temporary accommodation of family members; or

(B)
a lease or licence in respect of goods primarily for domestic use by family members, being domestic use in connection with a unit of accommodation occupied or used for the temporary accommodation of family members;

(ii)
a housing fringe benefit where the housing right is in respect of a unit of accommodation occupied or used for the temporary accommodation of family members;

(iii)
a residual fringe benefit where the recipients benefit:

(A)
is constituted by the subsistence of a lease or licence in respect of a unit of accommodation occupied or used for the temporary accommodation of family members; or

(B)
is constituted by the subsistence of a lease or licence in respect of goods primarily for domestic use by family members, being domestic use in connection with a unit of accommodation occupied or used for the temporary accommodation of family members;

(b)
the temporary accommodation is required solely because the employee is required to change his or her usual place of residence in order to perform the duties of that employment;

(c)
if the unit of accommodation is located at or near the employee
'
s former usual place of residence
-
the temporary accommodation was required because the unit of accommodation that was the employee
'
s former usual place of residence became unavailable, or unsuitable, for residential use by family members due to removal, storage or other arrangements relating to the change in the usual place of residence of the employee;

(d)
if the unit of accommodation is located at or near the employee
'
s new place of employment
-
the employee, or an associate of the employee, either before, on, or as soon as reasonably practicable after, the day (in this section called the
"
relocation day
"
) on which the employee commenced to perform the duties of that employment at the employee
'
s new place of employment, commenced sustained reasonable efforts to acquire, or to acquire the right to occupy or use, a unit of accommodation intended by the employee or associate, as the case may be, to provide a long-term place of residence for the employee; and

(e)
the fringe benefit is not provided under a non-arm
'
s length arrangement;

the following provisions have effect.

61C(2)
[Accommodation near former usual place of residence]

Where:

(a)
paragraph (1)(c) applies; and

(b)
a percentage (in this subsection called the
"
attributable percentage
"
) of the taxable value of the fringe benefit in relation to the year of tax is attributable to the subsistence of the lease, licence or housing right referred to in paragraph (1)(a) during the whole or a part of the period of 21 days that ended on the day on which the employee commenced to perform the duties of that employment at the employee
'
s new place of employment;

the amount that, but for this subsection and section
62
, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by the attributable percentage.

(ii)
the employee, not later than 4 months after the relocation day, pursuant to a contract entered into by the employee or an associate of the employee, commences or commenced to occupy or use a unit of accommodation intended by the employee or associate, as the case may be, to provide a long-term place of residence for the employee;

(iii)
the employee gives to the employer, before the declaration date, a declaration in a form approved by the Commissioner, in respect of the application of this section in relation to the employee; and

(c)
a percentage (in this subsection called the
"
attributable percentage
"
) of the taxable value of the fringe benefit in relation to the year of tax is attributable to the subsistence of the lease, licence or housing right referred to in paragraph (1)(a) during the whole or a part of the period commencing 7 days before the relocation day and ending on the earlier or earliest of whichever of the following days is applicable:

(i)
if, during the initial accommodation search period, a contract is or was entered into by the employee or an associate of the employee for the acquisition of, or of the right to occupy or use, a unit of accommodation intended by the employee or associate to provide a long-term place of residence for the employee
-
the day on which the employee could reasonably be or have been expected to commence, or to have commenced, to occupy or use that unit of accommodation pursuant to that contract;

(ii)
if the initial accommodation search period ends or ended before any contract of a kind referred to in subparagraph (i) of this paragraph is or was entered into by the employee or an associate
-
the day on which that period ends or ended;

(iii)
if:

(A)
the unit of accommodation that was the employee
'
s former usual place of residence was a dwelling in which the employee, or an associate of the employee, held a relevant proprietary interest;

(B)
within 6 months after the relocation day, a contract for the sale of that relevant proprietary interest is or was entered into; and

(C)
the efforts referred to in paragraph (1)(d), and the efforts of that kind that continue or continued to be made during the initial accommodation search period are, or were, efforts to acquire a relevant proprietary interest in a unit of accommodation, being a dwelling;

the day occurring 12 months after the relocation day;

(iv)
except in a case where subparagraph (iii) applies
-
the day occurring 6 months after the relocation day;

the amount that, but for this subsection and section
62
, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by the attributable percentage.

A reference in this section to the acquisition of a unit of accommodation includes a reference to the acquisition of a relevant proprietary interest in a unit of accommodation, being a dwelling.

61C(5)
[Definitions]

In this section:

"initial accommodation search period"
, in relation to a case to which paragraph (1)(d) applies, means the period commencing on the commencement, or the first commencement, as the case requires, of the efforts referred to in that paragraph and ending when efforts of that kind first cease or ceased to be made;

"relevant proprietary interest"
, in relation to a unit of accommodation, being a dwelling, means:

(a)
in any case
-
a prescribed interest in land on which a building constituting, or containing, the dwelling is located;

(b)
in any case
-
a prescribed interest in a stratum unit in relation to the dwelling; or

(c)
if the dwelling is a flat or home unit
-
a proprietary right in respect of the dwelling.

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site
is accurate and reliable, but gives no warranty of accuracy or reliability of such
information to the reader or any third party. The information provided by CCH is not legal or
professional advice. To the extent permitted by law, no responsibility for damages or loss arising
in any way out of or in connection with or incidental to any errors or omissions in any information
provided is accepted by CCH or by persons involved in the preparation and provision of the information,
whether arising from negligence or otherwise, from the use of or results obtained from information
supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are
subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted,
transmitted, or distributed in any way, except that you may download one copy for your personal use
only, provided you keep intact all copyright and other proprietary notices. In particular, the
reproduction of any part of the information for sale or incorporation in any product intended for
sale is prohibited without CCH's prior consent.